Covestro explores ammonia supply collaboration for MDI and TDI production

Covestro, Fertiglobe and TA’ZIZ have signed a Memorandum of Understanding to explore collaboration across the ammonia and nitric acid value chains, reflecting the parties’ shared interest in assessing both near-term supply solutions and longer-term opportunities supporting the transition toward lower-carbon production pathways.

“We see strong potential in combining our ammonia production portfolio with Covestro‘s industrial expertise and global footprint. The Memorandum of Understanding creates a structured basis to assess concrete projects and opportunities – from supply and infrastructure to downstream applications,” said Ahmed El-Hoshy, CEO of Fertiglobe.

Under the MoU, Covestro and Fertiglobe intend to explore short-term ammonia supply opportunities from Fertiglobe’s facilities to Covestro’s sites in China and the US. In parallel, they will assess longer-term supply options to sites in Europe, China and the US, based on low-carbon ammonia produced using carbon capture technologies, as well as green ammonia from renewable sources, including projects developed by Fertiglobe.

Ammonia is a key raw material for Covestro's production of MDI (diphenylmethane diisocyanate) and TDI (toluene diisocyanate), essential components for polyurethane hard and soft foams.

This collaboration also follows the closing of XRG’s acquisition of Covestro in December 2025 and reflects the additional opportunities enabled by Covestro and Fertiglobe operating within XRG’s Global Chemicals platform, with expanded international reach.

“The potential strategic supply arrangement with Fertiglobe could strengthen our access to a critical raw material while supporting the gradual transition towards lower-carbon production pathways. Reliable low-carbon ammonia supply enhances operational flexibility across our sites and helps manage long-term cost and availability risks. At the same time, the agreement is a first concrete step in translating our partnership with XRG into tangible business impact,” said Dr. Markus Steilemann, CEO of Covestro.

Beyond supply arrangements, the parties will also evaluate enabling infrastructure facilities such as storage and transport solutions, as well as potential business opportunities across the entire ammonia value chain, globally and in the United Arab Emirates.

“Together with Covestro and Fertiglobe, we see significant growth opportunities across the ammonia value chain, underpinned by TA’ZIZ’s role in building an ecosystem that enables sustainable growth, attracts global partners, and positions the UAE at the forefront of future chemical production,” said Mashal Saoud Al Kindi, CEO of TA’ZIZ.